Premier league side Everton have been handed the largest sporting sanction in the competition’s history, plummeting them to the relegation zone.
The club was given the heavy blow after the Premier League referred the club to an independent commission in March, but the specifics of the club’s alleged breach were not revealed.
Everton posted their fifth consecutive year of financial loss back in March, with a deficit of £44.7m in 2021/22.
Following a five day hearing in October, it was found that Everton’s losses amounted to £124.5m.
The Profit and Sustainability Rules (PSR) state that Premier League teams are permitted to lose £105m over a three-year period.
Everton have said they will appeal the decision after they were “both shocked and disappointed” by the “wholly disproportionate and unjust” ruling.
In a statement, the club said it “does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
“Both the harshness and severity of the sanction imposed by the commission are neither a fair nor a reasonable reflection of the evidence submitted.
“The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s profit and sustainability rules.”
Everton have said that the interest on the money borrowed to fund the building of their new stadium should have been taken into consideration to measure their PSR calculations.
Issues with COVID-19 softening the transfer market were also brought up by Everton, who said they were unable to sell players as a result of the pandemic.
The Premier League disagreed with both of these arguments.
It comes after a hard spell at Everton, full of uncertainty as the club managed to narrowly escape relegation in the 2022/23 season, finishing two points above the relegation spots.
Manchester City were also charged in February for financial breaches, with their case still ongoing.
Chelsea also face further scrutiny from football’s authorities over reports of payments connected to the club’s former owner Roman Abramovich.
Chelsea were fined £8.6m by European football governing body Uefa in July for “submitting incomplete financial information” between 2012 and 2019 as part of a settlement for breaking Financial Fair Play rules.
Featured Image Credit: Everton FC